Haldex Group January-June 2001

Haldex Group January-June 2001 Increased market shares on a very weak vehicle market Key Figures, MSEK 2001 2000 Change Order intake 3,209 3,225 -0.5% Net invoicing 3,275 3,184 + 3% Oper. earnings before depr. (EBITDA) 267 333 -20% Operating earnings (EBIT) 128 211 -40% Earnings before tax 93 180 -48% Net income 62 117 -47% Earnings per share, SEK 2:76 5:24 -47% Profit margin 4.1% 6.8% - Cash flow 5 -68 - Key business events Break-through in USA for Haldex AWD system. Ford chooses Haldex. The 1-1,5 billion SEK order over a 5-year period, announced in April 2001 came from Ford. Serial deliveries end 2003. Volvo chooses Haldex AWD system The 1 billion SEK order over a 5-year period, announced in March 2000, came from Volvo. Serial deliveries 2001/2002. Freightliner introduces Haldex brake chambers as standard Freightliner Corporation, the largest truck maker in USA, decided introduce Haldex long stroke brake chambers as standard. Yearly order value 50 MSEK. US truck maker introduces Haldex automatic brake adjuster as standard. Haldex won a multi-year contract adding 200 MSEK sales over the contract period. Hereby, Haldex brake adjuster market share grows to 50%. USA success for Haldex valve spring wire products Two important contracts were received - ovate formed products for GM engines and first deliveries of engine wire products to Japanese transplants (Toyota) in USA. Combined yearly order value 50 MSEK. Leading European forklift maker orders Haldex hydraulic drive system for engine cooling fans. Haldex newly developed hydraulic system for cooling fans to be introduced by leading European forklift manufacturer. Order value 250 MSEK over a 5-year period. Strategic alliance in anti-collision systems for commercial vehicles. Haldex and Altra Technologies, USA, established cooperation regarding development and marketing of Altra's electronic anti-collision system based on radar and ultrasonic sensor with distributed intelligence. Haldex acquired a minority ownership for 3 MUSD. Anti-collision systems are expected to be a fast growing market. Market development The vehicle business climate showed a sharp downturn during the period on the main markets in North American and Europe. The development was positive in South America and in Asia. Heavy vehicles In North America truck inventories continues to be trimmed to adjust to a lower demand. Whereas Class 8 truck sales declined 36% compared to 1st H 2000, production fell 51%. Sales and production of heavy trailers were down 49% and 51% respectively. Inventories of new Class 8 trucks have now declined 45% since year-start to 34,000 units. With an expected low production rate also during the 3rd Q, the inventories thereafter (just over 2 months' sales) are expected to be in line with current sales levels. This might give room for a certain production increase in the 4th Q and beyond in 2002, assuming sales do not drop further. In Europe, the market for heavy vehicles softened. During the 1st H sales and production declined some 10%. The general economic development in Europe is expected to soften further during the year and for the full year production of heavy vehicles are forecast to decline with at least 15% compared to last year's record. Light vehicles In North America, the development for light vehicles was similar to the one in the heavy segment. The downturn was, however, not quite as dramatic. The North American sales of light vehicles declined approximately 5% compared to 1st H 2000. The production fell 13%, indicating a continued trimming of the large inventories of vehicles. The inventory reduction was significant: from 83 days' sales in January to 56 days in June, and inventories are now approaching a normal level. In Europe, the period showed a weak market development, especially in Germany. Car sales declined 3.5%, whereas production, helped by exports, was unchanged form last year. Industrial vehicles The market for construction vehicles showed a significant downturn during the period. Compared to 1st H 2000, sales and production of heavy construction equipment declined some 17% in North America and 5% in Europe. In the light construction equipment the downturn was more moderate: 6% in North America and 4% in Europe. Sales and production of forklift trucks fell some 11% in North America but showed an improvement of 5% in Europe. Sales development As evident from the above description of the market development, the preconditions for our business activities during the period were dramatically deteriorated compared to 1st H 2000. The significantly depreciated Swedish Krona makes comparisons with last year difficult. On the sharply declining vehicle market we were, however, able to maintain or increase our market shares in most product areas. The group's order intake declined (currency adjusted) 11%, of which North America --6% and Europe and other markets together -5%. In nominal terms, order intake was 3,209 MSEK (3,225), a reduction of 0.5%. Net invoicing declined (currency adjusted) 8%. In nominal terms, net invoicing amounted to 3,275 MSEK (3,184), an increase of 3%. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/17/20010817BIT00270/bit0002.doc http://www.waymaker.net/bitonline/2001/08/17/20010817BIT00270/bit0002.pdf